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House Flipping Profit Calculator
Watched one too many HGTV episodes and now you're thinking about flipping houses? Cool. Let's see if the numbers actually work before you drain your 401(k).
Purchase & Sale
Costs & Fees
Profit Analysis
The Brutal Truth About Flipping Houses
HGTV makes it look easy. Buy a dump for $150k, slap on some subway tile and shiplap, sell for $350k. Reality check: they hide the 6 months of nightmare contractors, permit delays, and discovering the "charming original plumbing" is actually cast iron from 1920 that needs ripping out.
💡 Real Talk from Jake Rodriguez, Licensed Contractor
Your renovation budget is a lie. I've done 40+ flips. Not ONCE has a project come in under budget. Foundation cracks you didn't see? Add $15k. Electrical not up to code? Add $8k. Termites in the crawl space? Say goodbye to $12k. Budget 15-20% contingency minimum—and you'll still probably blow past it.
The 70% Rule (Your Only Friend)
Here's the formula that separates pros from broke amateurs:
Maximum Purchase Price = (ARV × 70%) - Renovation Costs
Example breakdown:
- ARV (fixed-up value): $300,000
- Renovation costs: $50,000
- Max you should pay: ($300k × 0.70) - $50k = $160,000
Why 70% and not 80% or 90%? Because that 30% covers:
- Your profit (hopefully 10-15%)
- Realtor commission (6%)
- Closing costs in/out (4-5%)
- Holding costs (2-4%)
- The inevitable screw-ups (5-10%)
Break this rule, and you're not an investor—you're a gambler.
⚠️ Common Mistake: "I'll Do the Work Myself"
No you won't. Even if you're handy, do you have 40 hours/week for 4 months straight? Permits to pull? Licensed subs to coordinate? I've seen weekend warriors turn a 3-month flip into a 14-month money pit. Your time has value. Unless you're an actual licensed contractor, hire pros and focus on finding the next deal. Your job is buying low and selling high—not sweating over drywall at 11pm.
What Everyone Forgets: Holding Costs
You know what kills beginners? Carrying costs. Every month that house sits there, you're bleeding:
- Mortgage/Interest: $1,200-2,000/month (if financed)
- Property taxes: $200-400/month
- Insurance: $100-200/month
- Utilities: $150-300/month (heat in winter, power for tools)
- Lawn/Snow: $100-200/month (code enforcement WILL fine you)
That's $2,000-3,500/month just to HOLD the property. A 6-month flip? You just burned $12k-21k in holding costs. And if renovations drag to 9 months (they will), add another $6k-10k.
The Real Cost Breakdown
Acquisition Costs:
- Earnest money (tied up, refundable): $1k-5k
- Inspection: $400-600
- Appraisal: $400-600
- Title/Escrow: $1,500-3,000
- Lender fees (if financing): $1k-3k
Renovation "Hidden" Costs:
- Permits: $500-5,000 (foundation work? LOL good luck)
- Dumpsters/Haul-away: $400-800 per load (you'll need 2-3)
- Portable toilets: $150/month (contractors WON'T use your only bathroom)
- Storage unit: $100-200/month (displaced furniture has to go somewhere)
Disposition Costs (Selling):
- Realtor commission: 6% of sale price (that's $18k on a $300k sale)
- Seller closing costs: 1-2% ($3k-6k)
- Staging rental: $2k-5k/month (yes, you NEED staging)
- Professional photos/video: $300-500 (also non-negotiable)
When to Walk Away
Hard Pass If:
- Needs foundation work (add $20k-50k, MINIMUM)
- Major mold/water damage (remediation $10k-30k+ and scares buyers)
- Flip timeline >9 months (holding costs will eat your profit)
- In a declining market (you're catching a falling knife)
- Your profit margin is under $30k (not worth the risk/work)
Green Light If:
- Cosmetic only (paint, floors, kitchen/bath update)
- Good bones, bad design
- Motivated seller (divorce, estate, out-of-state owner)
- Comps support your ARV (not "hopeful thinking")
- You can close fast and pay cash (or hard money ready)
💡 Jake's #1 Rule: Speed Beats Perfection
Don't install $10k custom cabinets when $3k stock cabinets from Home Depot sell the house just as fast. Buyers want clean and modern—not expensive. Gray paint, white subway tile, LVP floors, stainless appliances. DONE. Get in, get out, get paid. The longer you hold, the more you bleed.
ARV: How to NOT Lie to Yourself
After Repair Value is NOT "what Zillow says." It's what a real buyer will actually pay. How to nail your ARV:
- Pull comps from last 3 months (not 6, not 12—market moves fast)
- Same neighborhood, similar sq ft, similar finishes
- Adjust for differences: Extra bedroom? +$15k. No garage? -$20k.
- Get a realtor's CMA (Comparative Market Analysis—free if you promise to list with them)
- Be conservative. If comps range $280k-320k, use $290k, not $320k.
Overestimate ARV by $20k and you just turned a $40k profit into a $20k profit. Or worse—a loss.
Reviewed by Jake Rodriguez
Licensed Contractor & House Flipper
Jake has flipped 40+ houses and lost money on 3 of them. His advice? Never fall in love with a property—it's inventory, not your dream home.
Frequently Asked Questions
What's the 70% rule in house flipping?
Never pay more than 70% of the After Repair Value (ARV) minus renovation costs. Example: House will be worth $300k fixed up, needs $50k in repairs. Max offer: (300k × 0.70) - 50k = $160k. This leaves room for profit and unexpected costs. Break this rule and you're gambling, not investing.
How much profit should I make on a flip?
Aim for $30k-50k minimum profit after ALL costs. Sounds greedy? It's not. Half your flips will hit surprise problems (foundation cracks, mold, permit delays). You need wins to cover losses. Average successful flip profit in 2025: $45k-65k. Anything under $20k isn't worth the risk.
What are hidden costs everyone forgets?
Holding costs kill beginners. You're paying mortgage, insurance, utilities, and property taxes while the house sits empty. 6-month flip? That's $15k-25k in holding costs easy. Also: realtor commissions (6%), closing costs (2-3%), and the inevitable 'oh crap' budget overruns (budget 10-20% extra).
Should I flip houses with no money down?
Hard no. Those 'no money down' gurus are selling courses, not flipping houses. You need cash for: earnest money, inspections, down payment (or cash buy for speed), renovation budget, and an emergency fund. Minimum realistic entry: $50k-100k liquid capital. Less than that? Start wholesaling to build capital first.